RBS may Cut Credit Line to Mallya’s Beer Biz in Europe
Beleaguered businessman Vijay Mallya’s troubles with lenders do not seem to be limited to India, with global banking major RBS planning to terminate next month a credit line and all other banking services provided to his European beer venture. This has forced Kingfisher Beer Europe, owned by Mallya through a complex web of entities, to look for alternative avenues to replace the credit line and other banking facilities provided by RBS.
Mallya-led UB Group runs its overseas brewery business through California-based Mendocino Brewing Company, which sells a number of beer brands including
Kingfisher in the US, while operations in other countries are conducted through wholly-owned subsidiary United Breweries International (UK) and step-down unit Kingfisher Beer Europe (KBEL). Mendocino has Mr Mallya as its chairman and it is owned by his UB Group through a complex shareholding structure.
He has tried to keep the foreign operations separate from his troubled ventures in India, where a major controversy has broken out ever since he left the country amid growing clamour for recovery of dues totalling over .₹ 9,000 crore of the long-grounded Kingfisher Airlines. — PTI